Quiz: QUIZ: Ponzi Schemes

Question 2 of 10

Convicted fraudster Steven Hoffenberg was the chairman of Towers Financial Corporation and the owner of what newspaper?

Los Angeles Times

New York Post

Newark Star-Ledger

Washington Post

Correct!

Steven Hoffenberg was not only the former chairman of the Towers Financial Corporation bill collection agency, he was also at one point the owner of the New York Post. One might think that daily exposure to screaming tabloid headlines would have been enough to discourage him from engaging in any illegal activity, but his position at Towers proved too tempting for him not to abuse. He cheated investors out of $475 million in a scheme involving the bill collection agency, causing its eventual collapse in 1993. At the time, the Securities and Exchange Commission characterized it as "one of the largest Ponzi schemes in history."